But right now, "potential" is the operative word. Industry officials say organic meat is less than 1 percent of the overall meat market. Organic beef is even smaller, with one survey, from London's Organic Monitor, putting it at 2/100s of 1 percent of the $175 billion U.S. beef market.
Actual figures are largely guesswork, since the lion's share consists of small ranches, many of which sell their product directly to consumers interested in half a carcass of meat for the freezer.
Yet, interest in organic meat has been high, since the announcement in December of a single Washington state dairy cow testing positive for bovine spongiform encephalopathy (BSE), commonly known as mad cow disease.
"I like to call this the last frontier of the organic industry," said Michael Levine, president of the Organic Meat Co. of Organic Valley, based in La Farge, Wisconsin.
Levine plans to ramp up production sharply this year. Other producers, such as Chicago-based Dakota Organic Beef, are planning big expansions. The Organic Trade Association, in Greenfield, Massachusetts, said its members projected a 175 percent annual growth rate for organic meat until 2005.
Washington, Virginia-based Green Circle Organics has been selling out of organic beef for the past several weeks. But owner David Cole said, "We can't instantly increase our meat supply given long lead times and our tight control over breed and feed."
Natural Vs. Organic
Consumers currently looking for an alternative to conventional beef have two choices - meat labeled natural or organic. (A third choice, grass fed, is not yet defined by the Department of Agriculture).
Under USDA regulations, natural means the meat is minimally processed and contains no preservatives or additives.
Organic regulations, which took effect in 2002, are far more comprehensive, banning antibiotics, hormones and all animal by-products in feed, thought to be the source of BSE.
Organic regulations require traceability of all animals from birth to consumption; organic feed, grown without pesticides, or synthetic fertilizers; and animal access to pasture.
Unlike natural producers, organic operations have to be certified by a U.S. accredited agent once a year to make sure they are following organic regulations.
But because organic meat is relatively new and could not be labeled organic until regulations took effect in 2002, natural producers, each with a self-defined regime, have a bigger market share.
Whole Foods Markets Inc., for example, the largest U.S. natural foods and organic supermarket with 145 stores, primarily sells natural meat, though it does carry a small amount of fresh and frozen organic product.
Margaret Wittenberg, a vice president of the Austin, Texas-based chain, said Whole Foods relies on natural meat because of its availability.
"We need to have a good supply at all times," she said.
Since natural is loosely defined, Whole Foods requires producers to avoid all hormones, antibiotics and animal by-products in their feed.
The company also inspects its meat suppliers, requires traceability of animals and hires a third-party auditor to assess animal welfare and food safety standards.
Natural producers can use conventionally grown grain - which Wittenberg said is "the main difference with organic," at least in the Whole Foods regime.
Ample Supply
Niman Ranch, a natural producer based in Oakland, California, raises beef cattle on milk and grass for the first year. Then they are switched to grain until slaughter, when they are 18 to 22 months old.
Conventionally raised beef matures more quickly, because the cattle are fed hormones to help them gain weight and antibiotics to fend off disease that comes from eating grain too early in life.
Niman avoids both practices. The longer cycle of raising the animals means higher prices but also "more tender meat," President Rob Hurlbut said.
Coleman Natural Meats Inc., an